FTSE100 miner Fresnillo said record gold production in the final three months of 2011 meant it had beaten its full year target.
However, the Mexico-focused miner said silver production remained flat and would continue to do so into 2012.
The firm plans to boost its 2012 exploration budget to $264m, up 53% on the $173m spent in 2011.
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The company's quarterly and annual attributable gold production of 122,621 oz and 448,866 oz respectively was an increase of 22% year-on-year, allowing it to top a full-year target of 430,000 oz.
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The results were mainly due to better than expected volume ramp-up and recovery rates at Soledad-Dipolos and increased ore processed at Herradura, it said.
Fresnillo has lifted its target for 2012, with attributable gold production expected to be 460,000 oz following the start-up of its Noche Buena mine.
Quarterly attributable silver production of 10.3m oz and annual silver production of 41.9m oz was ahead of the 41m oz guidance, but remained at similar levels to 2010, the company added.
It said the start-up of its Saucito mine was offset by lower than expected silver ore grade at its Fresnillo mine.
Quarterly and annual silver production at Fresnillo fell by 22.4% and 15.6% compared to the corresponding periods in 2010, due to lower ore grades.
This trend was set to continue into 2012, the firm said, with silver production expected to be flat at 41m oz.
"Our next critical activity is to expand our resource base to meet our long term targets," said chief executive Jaime Lomeln.
"As such, a budget of US$264m for risk capital investment in exploration has been approved for 2012."
